Categories: CRIME

FG, P&ID resume $9.6bn battle in London today

The legal battle between the Federal Government and a British Virgin Island firm, Process and Industrial Development, over the controversial of a $9.6bn judgment against Nigeria resumes at a London court on Friday (today).

A London commercial court had in a judgment delivered on August 16, 2019, validated the award of the sum by a London arbitration panel against Nigeria and in favour of the P&ID.

The Federal Government had since then institute a series of legal actions to have the judgment overturned.

P&ID in an e-mail sent to our correspondent on Thursday stated that “the English Commercial Court has confirmed that a hearing will take place at 10 am on March 24 at the Rolls Building in London.

“Legal representatives from P&ID and the Nigerian Government will be present.”

The $9.bn award was first issued against Nigeria and in favour of the P&ID  in a January 31, 2017 ruling of a London arbitration tribunal, which held that the Federal Government was liable for the breach of a 20-year gas supply agreement signed in 2010  between the P&ID and Nigeria, through the Ministry of Petroleum Resources.

Under the agreement, the firm was to build in the Niger Delta region, a gas processing plant for the refining of natural gas, also known as “wet gas” into “lean gas” which would be used by Nigeria to generate electricity.

The two parties subsequently approached an arbitration tribunal in London which in January 2017 issued a final award of $6.56bn damages with accumulated interest worth over US$9.5bn in favour of the P&ID.

Sponsored

The Federal Government, through the office of the Attorney-General of the Federation and Minister of Justice, had said in a statement on December 6, 2019, that it had filed new processes at the English courts in its bid to upturn the award of $9.6bn.

The AGF, Mr Abubakar Malami, said this through a statement issued by his Special Assistant, Media and Public Relations, Dr Umar Gwandu.

Giving an insight into the case made out in the fresh filing, Gwandu stated that Nigeria argued that the gas supply and processing agreement “was procured on the basis of fraud and corruption, while the subsequent arbitral process was riddled with irregularities and deliberately concealed from the government.”

The minister’s spokesperson also explained that “the Federal Government has recently expanded its legal team, to include leading London law firm Mishcon de Reya.”

The P&ID  had, in its statement reacting to the new filings by the Federal Government last December, described the step by Nigeria as “an act of desperation to try to undo the Court’s sound conclusion that P&ID’s $10bn award is enforceable.”

SPONSORED
Alex Enemanna

A print journalist with vast knowledge of political developments in Nigeria. Passionate about equity and fairness through robust developmental journalism.

Recent Posts

Tricycle Stolen At Gunpoint In Umuahia Amidst Of Insecurity In Abia

A daring armed robbery occurred last night in Umuahia when gunmen snatched a tricycle, popularly…

55 minutes ago

Delta Assembly Signs Electricity Bill Into Law

The Electricity Power Sector Bill 2024 has been signed into law by the Delta State…

1 hour ago

Declare State Of Emergency On Southern Routes, CSG Urges Tinubu

A new umbrella organization for all southern groups, the Coalition of Southern Groups (CSG), has…

2 hours ago

FG Secures Fresh $134m Loan From AfDB To Boost Dry Season Farming

The Federal Government has secured a loan facility of $134million from the African Development Bank…

2 hours ago

Ebonyi Ex-Commissioner Decamps PDP For APC

Abia Onyike, a former commissioner in Ebonyi State, has joined the All Progressives Congress, the…

2 hours ago

Yahaya Bello’s Arraignment Postponed By Court Till Nov 27

In relation to new 16-count charges against former Kogi State Governor Yahaya Bello by the…

3 hours ago